Home > INT2 > Chapter 12 > Lesson 12.2.4 > Problem 12-132
12-132.
An insurance company wants to charge a higher premium to drivers of red cars because the company believes that they get more speeding tickets. A research company collected the following data to investigate their claim. Use the data below to decide if the insurance company should be charging a higher premium to drivers of red cars.
Total:
Red Cars:
Find the probability of getting a ticket and the probability of getting a ticket while driving a red car.
Then use the probabilities to determine whether a driver of a red car is more or less likely to get a ticket than a random driver.